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Petróleo Brasileiro S.A. - Petrobra Message Board

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  • musketeernumberone musketeernumberone Mar 2, 2009 12:24 PM Flag



    You have not apologized for calling me clueless... but that's ok... I can take it, but I won't forget...

    Thank you for the effort you put into your post. I perceive at least a minimum of knowledge behind it; Since I fundamentally disagree, I mostly just respect the effort.

    Unfortunately, your third paragraph is so full of errors that's it's hard to just let it go... Let's start here:

    "Businesses right now cannot get credit? Wonder why?" You imply that the government is crowding out the private sector, but the facts don't support this conclusion. Corporate debt issuance is near an all time high. Rates on government bonds are at an all time low. The dollar has strengthened against most currencies. This indicates a huge demand for government debt and a huge demand for coprorate debt and the market has room for both.

    "The government is just like you or me. There is a limit to the amount of credit we can manage." The US is nowhere near the top of the list in terms of government debt as a percentage of GDP. We can afford to issue more. I agree that in concept there are limits; But we have not yet reached the limit.

    "Last year, China said no more – they saw us becoming insolvent and reaching the point that we could never pay back our debt." This is just not true. If it were true, interest rates would not be at an all time low. US Govt debt is the safest investment in the world. Period. And the Chinese know it. They have made a huge profit holding our government debt.

    "in the Great Depression, we did not have a federal government already with trillions of dollars of credit debt from deficit spending, bankrupt (and yes, this country is there now.) None was left for businesses. That is why the fed starting printing money here a few months ago." You seem to think this all started yesterday (November 4th?). Honestly, this is so wrong, I don't know where to begin...

    "It is like when you have savings and credit but no debt and you get laid off of work, you draw down on your savings and increase you credit spending UNTIL you get reemployed. Than you push to pay down that credit and build your savings back. But if you have no savings and your credit is max’d to the limit and you are laid off of work, you have no other option but to cut spending, maybe live on the street for a while, unless you are the federal gov and can just print it."

    Your metaphor not applicable because: 1) The government CAN just print it. 2)The government SHOULD try to add fuel to the economically to prevent a melt-down, 3) The government should NOT try to pay down debt (take money OUT of the system) while the system is gasping for lack of demand, and 4) The way to keep people without savings off the street is to create jobs; if businesses are not creating jobs, then the government should try to stimulate job creation. You seem pretty quick to put people out on the street. I pray you never end-up there.

    Finally, with respect to taxes... Rich Americans can afford to pay more taxes to live in the best country in the world; In our country's hour of need, those who have benefited the most should be asked to pay more. Enough million dollar offices for wall street executives. Enough multi-million dollar bonuses for ripping off investors, off-shoring jobs and destroying shareholder value. Enough of ponzi scheme's by wall street insiders. Enough of corporate welfare and tax loop-holes for the wealthy. Enough of policies which have only benefited the few.


    Do you need any better evidence of our need for an alternative?

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